Ferrexpo increases PXF to USD 400 mln, extends tenor to four years

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN, FXPOLN) increased the PXF facility it arranged in November
to USD 400 mln from USD 195 mln, the company reported in its Aug. 9 filing. The
tenor of the facility was increased to four from three years with a grace
period of one year before quarterly amortizations, while the margin to USD
Libor remained unchanged at 450 bps.

Dmytro Khoroshun: This news
comes as no surprise after Ferrexpo discussed the possibility of taking on more PXF loans at a June
analyst meeting. The repayment of USD 173 mln Eurobond principal in April 2019
now looks secured.

We retain our neutral view on FXPOLN Eurobonds.